How a percentage commission works
With a percentage commission, your listing agreement sets a rate and the brokerage is paid that rate times the sale price, usually from your proceeds at closing. The dollar amount grows as the price grows. On a hypothetical $400,000 sale, a 3% listing commission is $12,000. On a hypothetical $700,000 sale it's $21,000, for work that may not be very different.
The rate isn't fixed by law. Under the NAR settlement practice changes, REALTORS® and MLS participants working with sellers must disclose in conspicuous language that broker commissions "are not set by law and are fully negotiable." In Idaho, every seller representation agreement must be in writing and must state all fees or commissions (Idaho Code § 54-2050).
The upside of a percentage is alignment. The agent earns more when you get a higher price, and many agents don't get paid at all unless the home closes.
How a flat fee works
A flat fee is a set dollar amount for a defined package of services. Depending on the brokerage, it may be paid up front, paid at closing, or split, and some packages add a percentage or optional services on top. What matters is what the written agreement says the fee covers.
The upside is predictability. The fee doesn't grow with your price, so the savings compared with a percentage get bigger as the price rises. See /selling-costs/commission-calculator/ to run your own numbers.
Here's a hypothetical comparison, for illustration only and not any company's price. Against a 3% commission, a $5,000 flat fee is $7,000 less at a $400,000 sale price ($12,000 − $5,000) and $16,000 less at $700,000. Below about $166,667 the percentage costs less. The break-even price is the flat fee divided by the rate.
The trade-off depends on which kind of flat fee you're buying.
Two flat-fee models: full-service flat rate and flat-fee MLS listing
| Full-service flat rate | Flat-fee MLS listing | |
|---|---|---|
| What it is | A licensed agent represents you through the whole sale for a fixed price | A licensed broker enters your home on the MLS; you run most of the sale |
| Pricing advice | Agent prepares it | Often you, or an add-on |
| Showings | Arranged by the agent or brokerage | Usually you |
| Offers and negotiation | Agent negotiates for you | Usually you, unless the package adds help |
| Contracts, deadlines, closing coordination | Agent handles them | Usually you, working with the title company |
| When the fee is typically paid | Often at closing | Often up front |
| If the home doesn't sell | Depends on the agreement; fees paid at closing may not be owed | An up-front fee is usually already spent; check the agreement |
These are general descriptions. Individual brokerages mix and match. JupiDoor offers the first model in Utah and the second in Idaho, and its current packages appear on this page. Whatever you choose, read the agreement for the exact list of services.
One point is the same under both. Once your home is publicly marketed, many MLSs require the listing to be entered within one business day, according to NAR. Sellers who want to limit exposure can ask about "office exclusive" or "delayed marketing" exempt listings, which require a signed waiver.
What you get and what you give up
With a percentage commission you get full service and an agent whose pay rises with your price. You give up a share of equity that grows with the price, even when the work doesn't.
With a full-service flat rate you get the same kinds of services for a known cost. You give up the price-linked incentive. Ask how the brokerage handles workload, such as how many listings each agent carries and who covers showings.
With a flat-fee MLS listing you get MLS exposure and control over the sale for the lowest listing-side cost. You give up an advocate at the table. You'll price the home, schedule showings, answer buyer agents, negotiate, track contract deadlines and coordinate with the title company. In Idaho, ask whether the agreement makes you a client, which brings the agency duties in Idaho Code § 54-2087, or something more limited.
Buyer-agent compensation is a separate choice under every model. A flat listing fee doesn't reduce what a buyer's agent may ask for. See /selling-costs/buyer-agent-commission/.
When each tends to make sense
- Percentage commission: you want full service and you've negotiated a rate you're comfortable with, or the property is unusual and you want the agent's pay tied to the result.
- Full-service flat rate: you want an agent to handle pricing, showings, negotiation and paperwork, and your price is high enough that a percentage would cost noticeably more.
- Flat-fee MLS listing: you're comfortable negotiating, you can show the home yourself, you'll read contracts carefully, and you mainly need MLS exposure.
- Any of the three: compare total cost at your realistic sale price, including any buyer-agent compensation you plan to offer, using the same price for each.
Questions to ask any agent or brokerage
- What exactly does the fee include? Please put the list of services in the agreement.
- Is the fee paid up front, at closing, or both? Is anything added at closing?
- What do I owe if I cancel, or if the home doesn't sell before the agreement ends?
- Who sets the list price, schedules showings, and presents and negotiates offers?
- Am I a client under a written representation agreement? What duties do you owe me?
- How will you handle buyer-agent compensation questions now that offers can't go on the MLS?
- Which MLS will the home be on, and when will it go live?
- What are the start and end dates of the agreement, and does it renew automatically? (Idaho bars most auto-renewal clauses under § 54-2050(3).)
This page is general information, not legal advice. Read any listing agreement in full before signing, and consult a real estate attorney if a term is unclear.
This guide is general information about how selling works in Utah and Idaho, not legal, tax or financial advice. Laws, forms and customs change; read the actual documents you are asked to sign, and talk to an attorney or tax professional about your situation.
